California Housing Affordability Declined in Q2 2026
California's housing affordability declined in the second quarter of 2026, as higher mortgage rates and rebounding home prices increased borrowing costs for buyers. Only 19 percent of California households could afford to purchase a median-priced home at $916,750.
California's housing affordability saw a decline in the second quarter of 2026, dropping to 19 percent of households able to afford a median-priced home, down from 22 percent in the previous quarter. The California Association of Realtors (C.A.R.) reported that higher mortgage rates and rising home prices significantly increased borrowing costs for prospective buyers.
The median home price in California reached $916,750 during the second quarter. This price point, coupled with increased interest rates, diminished purchasing power. However, affordability remained higher than in the second quarter of 2025, when only 17 percent of households could afford to buy a home.
The report highlights the sensitivity of the housing market to economic shifts. Elevated mortgage rates are a primary factor impacting monthly payments and the overall financial capacity of homebuyers.
The market's affordability may continue to fluctuate until interest rates stabilize or home prices begin to decrease. C.A.R. continues to monitor and report on market trends.